Aditya Birla Fashion and Retail, incorporated in the year 2007, is a large cap company with a market cap of Rs 18,851.25 crore, operating in retail sector.
Aditya Birla Fashion and Retail key products/revenue segments include apparels, homemart & accessories, other services, commission, scrap, export incentives and other operating revenue for the year ending 31-Mar-2020.
Investment rationale
The brokerage says lifestyle brands over the years have generated strong operating cashflows with no outside capital incurred for growth. The company has rapidly scaled up its distribution reach by having 2200+ stores mainly through asset light franchisee stores (~400 stores are owned). In the next five years, ABFRL expects to increase store count to more than 3500 stores by focusing on enhancing penetration in newer towns.
Financials
For the quarter ended 31-12-2020, the company has reported a consolidated total income of Rs 2,133.14 Crore, up 82.11 per cent from last quarter’s total income of Rs 1,171.32 crore and down 17.87 per cent from last year same quarter’s total income of Rs 2,597.34 crore. Company has reported a net profit after tax of Rs 58.44 crore in latest quarter.
Promoter/FII Holdings
Promoters held 70.4 per cent stake in the company as of Dec 30, 2020, while FIIs held 2.6 per cent, DIIs 12.3 per cent and public and others 14.6 per cent.
